TIDMIDH
RNS Number : 1051D
Immunodiagnostic Systems Hldgs PLC
23 October 2020
H1 Trading Update
Immunodiagnosti c Systems Holdings PLC
23 October 2020
Immunodiagnosti c Systems Holdings plc
H1 Trading Update
Immunodiagnostic Systems Holdings PLC ("IDS" or "the Group"), a
specialist producer of manual and automated diagnostic testing kits
and instruments for the clinical and research markets, today
provides a trading update for the six months ended 30 September
2020 ("H1 FY21").
Revenue Update
The COVID-19 pandemic has had an extraordinary impact on global
economic performance, and to healthcare systems around the world.
Levels of routine diagnostic testing dropped significantly to
around 50% of normal levels in April. Since then they have been on
a recovery path to normalized levels, reaching an estimated 85% in
September. This resulted in a material impact on IDS revenues in H1
FY21.
Unaudited Group revenues for H1 FY21 are GBP13.7m, 27% lower
than the same period last year on both a LFL (i.e. at constant FX
rates) and reported basis. This revenue performance was
characterized by a low Q1, the maximum revenue contraction being in
April where revenues were only at 53% of previous year levels.
However there has been a significant revenue recovery during Q2, as
set out below:
FY21 FY20 % of FY20
revenue achieved
in FY21
Q1 (April
- June) GBP5.7m GBP9.1m 61%
----------------------- ----------------------- -------------------------------
Q2 (July
- Sept) GBP8.0m GBP9.7m 84%
----------------------- ----------------------- -------------------------------
Total GBP13.7m GBP18.8m 73%
----------------------- ----------------------- -------------------------------
The following table summarizes the unaudited revenue performance
of the three business units within IDS:
H1 FY21 H1 FY21 v
H1 FY20
Group GBP13.7m -27%
----------------------- -----------------------
Automated Business GBP8.2m -25%
----------------------- -----------------------
Manual Business GBP3.6m -37%
----------------------- -----------------------
Technology Business GBP1.9m -9%
----------------------- -----------------------
Our speciality endocrinology business declined, however it
proved more resilient to the effects of the pandemic than our
Vitamin D business. It was pleasing to see continued growth in our
Autoimmune business versus the same period last year.
Business performance was very dependent on geography. During Q2
FY21 sales in our direct European territories had recovered and
were slightly ahead of the same period in the previous year.
Conversely, sales in the USA and some of our distribution
territories were significantly lower due to these countries taking
longer to emerge from the first stage of the COVID-19 crisis.
Automated KPIs
During H1 FY21, we placed or sold 9 machines (H1 FY20:18) in our
direct markets, and 12 (H1 FY20: 14) via our distributors, bringing
the total to 21 (H1 FY20: 32). Returns in the quarter in our direct
sales territories were 10 (H1 FY20: 14). The average number of
assays run on an analyser increased to 6.1 (September 2019: 5.4)
demonstrating that we continue to be successful in upselling new
assays onto existing placements.
COVID-19 Products
During H1 FY21 we launched automated immunoassays for the
detection of SARS-CoV2 IgG and IgM antibodies, which can detect
past infections and also provide critical public health
information. We also provided outsourced manufacturing services to
The Binding Site (UK) for their ELISA-based SARS-CoV-2 antibody
test. Revenue from COVID-19 products amounted to GBP0.4m during Q2
FY21. In conjunction with one of our partners we are working on the
development of a saliva-based rapid test for SARS-CoV-2 antigens.
This test would allow for immediate identification of individuals
with an elevated amount of SARS-CoV-2 and be extremely helpful for
curtailing the spread of the virus.
Automated Assay Launches
Our R&D efforts delivered a new automated Cortisol assay,
which has successfully rounded out our automated hypertension
panel. Additionally, we achieved 510k approval for our BAP assay in
the USA and expect to make the first sales of this key assay in H2
FY21. We also launched a panel of four therapeutic drug monitoring
tests used to monitor the efficacy of Infliximab and Adalimumab
drugs used in the management of chronic inflammatory diseases.
These are the first such automated tests available in the
market.
The assays available for sale on the IDS automated instruments
now comprise:
H1 FY21 H1 FY20
Speciality Endocrinology 23 22
-------- --------
Infectious Disease 25 23
-------- --------
Autoimmune Disease 29 29
-------- --------
Allergy 67 67
-------- --------
Therapeutic Drug
monitoring 4 0
-------- --------
Total 148 141
-------- --------
At the end of H1 FY21, 12 of the speciality endocrinology assays
are available for sale in the USA (H1 FY20: 11)
Operations
IDS had faced unprecedented challenges and restrictions arising
from the COVID-19 crisis - these have varied in each of our
operational locations, and across the territories where our
customers and suppliers are based. It is a credit to our entire
team that we were able to maintain full operational capabilities
across the business, thus ensuring continuity of supply to all our
customers, while adhering to all regulations recommended to ensure
the safety of our employees. We have carefully managed costs during
the period, using various reduced hours working schemes where
appropriate. As result we have been able to reduce fixed costs by
over GBP2m in H1 FY21 compared to our plan.
Other KPIs
Closing cash and cash equivalents were GBP24.2m at 30 September
2020 (31 March 2020: GBP27.6m). During H1 FY21 a dividend of
GBP0.5m was paid related to the previous year, and there were no
share buybacks.
At 30 September 2020 the Group employed 286 people on a
full-time employment basis (31 March 2020: 295 persons).
Outlook
Throughout H1 we have seen a continued improvement in the
revenue trajectory of the business as it recovered from the impact
of the COVID-19 pandemic. However there remains uncertainty as to
how this recovery might evolve, as it is highly contingent on the
future development of the pandemic.
We remain confident, that once the global situation improves,
IDS is well positioned to return to growth, leveraging our
increasing installed base and assay menu, which now includes a
comprehensive SARS-CoV-2 offering, as well as our strong balance
sheet position. Furthermore, our shrinking Vitamin D business has
lost significant weight in our revenue mix, thus the structural
growth of our non-vitamin-D business should show through once we
have returned to normal.
Interim Report
The interim results for the six months ended 30 September 2020
are expected to be announced on 20 November 2020.
For further information:
Immunodiagnosti c Systems Holdings plc Tel : +44 (0)191
5190660
Jaap Stuut, Chief Executive Officer
Paul Martin, Group Finance Director
Pee l Hunt LLP Tel : +44 (0)207 418 8900
James Steel
Oliver Jackson
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END
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